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Andean American Announces US$ 65 Million Structured Debt Financing
Andean American Announces US$ 65 Million Structured Debt Financing
About this update from Regulus Resources Inc
[{"type":"text","content":"\nAndean American Announces US$ 65 Million Structured Debt Financing\n\n\n Aug. 11, 2009 (Filing Services Canada) -- Andean American Mining Corp. (AAG - TSX Venture, AQN - FWB), is pleased to announce the signing of a financing agreement for a minimum of US$65 million and up to US$70 Million. The project has a 12-15 month scheduled completion date. The senior debt financing will be for an initial 2 year term. 93% of the proceeds will be used to bring the Company's 100% owned Invicta Project into production, with the remaining 7% going towards administrative costs. A prominent New York based Investment Bank will act as the lead agent and will receive a cash commission and broker warrants. The firm has been financing companies in the mining, metals, minerals and energy industry for the better part of the last decade. This initial financing is reflecting the time value of money. It anticipates a Senior Secured Debt Security attracting 15 million warrants at $0.30 for a 5 year term. A condition of the financing is such that in the event of a change of control, the entire debt including interest becomes due and payable. It is anticipated that closing will take place the week of September 15, 2009 and is subject to approval by the Toronto Stock Exchange. In addition, the Board of Directors of the Company wishes to announce that the Company has arranged a final bridge loan of up to US$400,000 at a zero percentage rate to fund ongoing operating costs. The company has agreed to issue bonus shares in the amount 20% of the total at CAD$0.20, subject to TSX approval. Andean American Mining Corp. (TSX.V:AAG) (FWB:AQN) is an international mining and exploration company focused on growth. The Company is actively pursuing new targets of potential early stage gold and silver prospects in Peru and currently has two key assets: the 41,500 hectare Invicta gold-silver-copper advanced exploration stage project; 58% of Sinchao Metals Corp., owner of the Sinchao zinc-copper-silver-gold-lead mineralization project.On behalf of Andean American Mining Corp., \"John Huguet\" John Huguet Chairman & CEO Andean American Mining Corp.T: 604.681.6186F: 604.681.3652E: [email protected] This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not...